New York's $25m offer to BlackRockAll Articles
BlackRock, the American global investment management corporation, will move into a new Hudson Yards skyscraper as part of its global headquarters expansion in New York State. The firm is set to create 700 new jobs and retain 2,672 existing positions in return for $25 million in refundable tax credits.
BlackRock will move from tony Park Ave. to the Hudson Yards neighborhood on the far west side of Manhattan, where its headquarters will be for at least 20 years.
To encourage BlackRock to expand in New York State, Empire State Development (ESD), the umbrella organization for New York's two principal economic development public-benefit corporations, is providing the company with up to $25 million in performance-based Excelsior Jobs Program refundable tax credits. BlackRock will create 700 new jobs, retain 2,672, and maintain those staffing levels for the next 10 years. The new employees will perform jobs that cut across the entire firm, including client businesses, investment management services, risk and quantitative analysis, and technology and operations. Since its founding in 1988, BlackRock has called New York City home. The firm currently has 13,000 employees globally and approximately 2,700 employees in multiple locations in New York City. In the fall of 2022, BlackRock will relocate its NYC-based staff to 50 Hudson Yards.
According to ESD, BlackRock had threatened to move 400 jobs out of the state instead of moving to Hudson Yards.
“Attracting investment and growing jobs are our top priorities, and this agreement will create and retain more than 3,300 jobs and bring in hundreds of millions of dollars in private investment – it’s a win-win for New Yorkers,” said ESD President, CEO & Commissioner Howard Zemsky.
“BlackRock was founded by eight partners in a single office in Midtown Manhattan more than 25 years ago. We had a simple vision to merge our deep knowledge of the capital markets with a technology-driven risk management platform to create a different type of asset manager,” said Robert S. Kapito, Co-founder and President of BlackRock. “Since then, clients have come to value our ability to help them solve their most difficult financial problems and we’ve grown into one of the most trusted asset managers in the world. We are thrilled to be an anchor tenant in one of the most innovative real estate projects in New York’s history.”
At September 30, 2016, BlackRock’s AUM was $5.1 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®.
Tax credits are available for strategic businesses such as high tech, bio-tech, clean-tech and manufacturing that create jobs or make significant capital investments.
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